Virtual Global Education Ltd. vs ACIT

Parties Involved

Facts Summary

The assessee, Virtual Global Education Ltd., filed its return of income for the assessment year 2015-16, declaring income of INR 32,23,630/-. The case was selected for scrutiny, and notice under section 143(2) of the Income Tax Act, 1961 was issued. The Authorized Representative of the assessee attended the assessment proceedings. The Assessing Officer made an addition of INR 3,74,08,810/- on the basis that the assessee could not explain and produce books of accounts along with supporting evidences. The assessee was asked to explain on 28.12.2017 but no one appeared on behalf of the assessee. Accordingly, 30% of total expenses of INR 12,46,96,031/- i.e. INR 3,74,08,810/- was added back to the income of the assessee and assessed the income of the assessee under section 143(3) of the Act vide assessment order dated 28.12.2017 at INR 4,06,32,440/-. Aggrieved against this, the assessee preferred appeal before the Commissioner of Income Tax (Appeals), who dismissed the appeal of the assessee. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Dismissal of appeal against order passed u/s 143(3) of the I.T. Act, 1961 without providing due, proper or adequate opportunity of hearing.
• 2. Making an addition of Rs. 3,74,08,810/- on adhoc basis on the ground that the supporting evidences were not supplied.

Judgment Outcome

Decided in favour of Assessee.

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